18 Cal. App. 5th 453
Cal. Ct. App. 5th2017Background
- In June 2012 Kirzhner leased a Mercedes-Benz covered by an express written warranty and later alleged numerous defects unfixable after repeated repair attempts.
- Kirzhner sued under the Song-Beverly Consumer Warranty Act (Civ. Code § 1790 et seq.), seeking restitution under § 1793.2 after the manufacturer failed to replace the vehicle or make restitution.
- Mercedes made a Code of Civil Procedure § 998 settlement offer adopting § 1793.2(d)(2)(B) language (including collateral charges such as sales tax, license and registration fees); Kirzhner accepted and judgment was entered.
- The parties disagreed on the restitution calculation; Kirzhner sought roughly $55,000 including ~$680 in post-lease registration renewal and a certificate-of-nonoperation fee; Mercedes sought about $45,500.
- The trial court awarded about $47,700 but excluded the post-lease registration renewal and certificate-of-nonoperation fees, reasoning "registration fees" in § 1793.2(d)(2)(B) refer only to fees paid at the time of the original purchase/lease.
- Kirzhner appealed solely to recover the $680 in registration renewal/certificate fees; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 1793.2(d)(2)(B) restitution includes vehicle registration renewal fees paid after the original purchase/lease | Kirzhner: "registration fees" means all registration fees whenever paid, including renewals and later certificate fees | Mercedes: "registration fees" are collateral charges tied to the original transaction (purchase/lease), not later renewals | Court: Affirmed—registration renewal fees incurred after the original transaction are not recoverable under § 1793.2(d)(2)(B) |
| Whether post-purchase registration renewals are "payable" within the statute's restitution phrase | Kirzhner: "payable" broadens recoverable fees to include future renewals | Mercedes: "payable" addresses financed purchase payments, not recurring future ownership costs | Court: "Payable" means amounts payable in connection with the original purchase/financing, not later recurring fees |
| Whether renewal fees qualify as "incidental damages" under § 1793.2(d)(2)(B) | Kirzhner: Renewal fees are incidental damages resulting from the defective vehicle | Mercedes: Incidental damages are costs caused by defect (repairs, towing, rentals), not ordinary ownership costs | Court: Renewal fees are ordinary ownership costs, not incidental damages; therefore not recoverable |
| Whether adopting Kirzhner's view would unduly expand restitution exposure | Kirzhner: (implicit) broader recovery appropriate under remedial statute | Mercedes: Expansive view would expose manufacturers to routine ownership costs (gas, oil, etc.) | Court: Rejected broad view to avoid opening a "Pandora's box" of non-defect-related costs |
Key Cases Cited
- Cummins, Inc. v. Superior Court, 36 Cal.4th 478 (construing statutory intent and statutory interpretation principles)
- Mitchell v. Blue Bird Body Co., 80 Cal.App.4th 32 (statute intended to allow recovery of entire amount expended for vehicle at purchase, including financed amounts)
- Joyce v. Ford Motor Co., 198 Cal.App.4th 1478 (discussing remedial purpose of the Song-Beverly Act and its consumer-protective construction)